RMC No. 32-2012: Clarifies the grant of tax exemption to private contractors for socialized housing projects under the “Urban Development and Housing Act of 1992”

Key points

1. Scope of the exemption. The exemption from project-related taxes and VAT for project contractors and developers is limited to the construction and development of houses and lots or homelots. Its purpose is to reduce housing costs for the underprivileged and homeless and encourage private sector participation.
2. Not covered. Developing or constructing classrooms, school buildings, multi-purpose halls/covered courts and livelihood centers falls outside the term socialized housing. These projects cannot qualify for the incentives under Section 20 of RA No. 7279.

Who is affected

• Private sector project contractors and developers in socialized housing